135 effects of financial management reforms on financial ...laws, rules systems and processes used...

International Journal of Trend in Scientific Research and Development (IJTSRD)

Volume 3 Issue 6, October 2019 Available Online: www.ijtsrd.com e-ISSN: 2456 – 6470

@ IJTSRD | Unique Paper ID – IJTSRD29255 | Volume – 3 | Issue – 6 | September - October 2019 Page 839

Effects of Financial Management Reforms on

Financial Corruption in Nigeria Public Sector

Onukelobi, Peace Chinwe; Okoye, Pius V. C. PhD

Department of Accountancy, Faculty of Management Science,

Chukwuemeka Odumegwu Ojukwu University, Igbariam Anambra State, Nigeria

ABSTRACT

This paper examined Financial Management Reforms and its Effect on Curbing

Financial Corruption in Nigeria Public Sector. A survey design was adopted in

the study and a sample of three hundred and twenty four (324) respondent

which consist of Accountants and Auditors from Anambra state MDAs. The

variables used for this study consists of dependent and independent variables.

The dependent variable for this study is financial management reform proxy

as IPSAS, TSA, IPPIS, and GIFMIS. The data generated were subjected to

different statistical tests such as descriptive statistics, correlation analysis,

jargua-Bera normality test, and auto correlation test. The data gathered were

finally analyzed using Ordinary Least Square (OLS) regression analysis. The

study found that International Public Sector Accounting Standards (IPSAS and

Treasury Single Account (TSA), when tested as standalone variables was found

to be positively and statistically significant in curbing financial corruption.

While Integrated Payroll and Personnel Information System (IPPIS) and

Government Integrated Financial Management Information System (GIFMIS)

when tested as standalone variable was found to be positively but

insignificantly and negatively but insignificantly curbing financial corruption

respectively across public sector in Nigeria. Meanwhile, the t-statistic result of

the interaction among these variable showed that their combination can go a

long way in curbing financial corruption. The study recommends that, There

should be Effective/efficient monitoring, upgrading and sustenance of IPSASs,

TSA, IPPIS and GIFMIS in the public sector, if Nigerian government is actually

sincere and serious about tackling corruption in the country and stop cases of

financial mismanagement, teaming and lading; and prepare financial

statements that could make full disclosure of every material facts and figures.

This study, been the first and best of its type, makes a two major contributions

to knowledge in a way that the variables used were tested as both stand-alone

and interactive variables, and the results are quite revealing.

Key Words: Financial Management Reforms (FMR), Corruption, Variables,

Ministry Department and Agencies (MDAs)

How to cite this paper: Onukelobi, Peace

Chinwe | Okoye, Pius V. C. "Effects of

Financial Management Reforms on

Financial Corruption in Nigeria Public

Sector" Published in

International Journal

of Trend in Scientific

Research and

Development

(ijtsrd), ISSN: 2456-

6470, Volume-3 |

Issue-6, October

2019, pp.839-852, URL:

https://www.ijtsrd.com/papers/ijtsrd29

255.pdf

Copyright © 2019 by author(s) and

International Journal of Trend in Scientific

Research and Development Journal. This

is an Open Access article distributed

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1. INTRODUCTION:

Corruption is prevalent in every society and Nigeria is not an

exception (Tolu & Ogunro, 2012). Different countries

including Nigeria have been intensifying efforts to ensure

reduction or probably elimination of the act corruption that

has eaten so deep into our society. A major challenge faced in

an attempt to achieve this, is, ascertaining the measures that

will be applied to effectively reduce this plague (Enofe,

Afiangbe & Agha, 2017).

Corruption is one of the attributes of poor governance which

is highly detrimental to economic and social equity,

inadequate or inefficient management of finances.

Significantly high corrupt nation are poorer and their rate of

growth are lower than the less corrupt ones. Starting from

political and administration across the various steps, the

level and nature of corruption varies. One of the major

hindrances and barriers that disrupts achievements of a

nations’ set down goals or targets and reduces/minimizes its

financial performance, infrastructural development,

investment implementation process, wrong investment

decision, assets misappropriation, over and under financial

statement, etc. is associated with corruption (Osakede,

Ijimakinwa, Adesanya, Ojo, Ojikutu, & Abubarka, 2015).

For instance in Nigeria, corruption cases are prevalent and

its occurrence is with impunity, this is because it has indeed

become a society-induced activity in the sense that, it now

enjoys popular support from the people, invariably,

corruption has been democratized or probably because

there is no or little sanction for corrupt practices (Tolu &

Ogunro, 2012).

Therefore, under Economic Reforms and Governance Project

(ERGP) initiative, signed by the World Bank, the Nigerian

government commenced Public Financial Management

(PFM) Reforms in 2004, in order to deliver services more

efficiently and effectively, strengthen governance and

accountability and reduce corruption which forms their

major objectives.

In order to curb this issue of corruption, both past and

present administration in Nigeria had introduced and

IJTSRD29255

International Journal of Trend in Scientific Research and Development (IJTSRD) @ www.ijtsrd.com eISSN: 2456-6470


applied different measures and strategies to checkmate and

control its activities in order to ensure corruption free

economy. e.g.; ICPC, EFCC, Public Procurement Reform, Over-

bloated Personal reduction and Monetization to reduce

waste

The accountability challenges in Nigeria and Anambra in

particular, are as a result of the cases of wrong practices;

such as ghost workers on the pay roll of ministries and extra-

ministerial departments, fraud, embezzlements and

destroying of sensitive office documents, poor budget

implementation, and corruption Perpetuation of such

financial malpractices and other fraudulent practices, were

made more possible (Onuorah & Appah, 2012). Eight

hundred and fifty (850) ghost workers were discovered in

2016, this was in a bit to eliminate waste in its expenditure

(Governor Obiano in Punch February 12, 2016).

The present administration of President Buhari, in seeking

for solutions to curb corruption, through the change agenda,

has taken the fight against corruption as one of its major

agenda. Full implementation of the TSA mechanism,

implementation of IPSAS, IPPIS, E-payment procedure,

GIFMIS and full prosecution of officers found to be involved

in corruption or corruption practices are some of the tools

suggested to be utilized.

Arising from above, the main objective of this study is to

investigate the effect of Financial Management Reforms on

Curbing Corruption in Nigeria Public Sector. Specific

Objectives are:

1. To ascertain the extent to which adoption of

International Public Sector Accounting Standard (IPSAS)

can curb financial corruption in the Nigeria public

sector.

2. To evaluate how the application of Treasury Single

Account (TSA) can curb financial corruption in the

Nigeria public sector.

3. To determine how Integrated Payroll and Personnel

Information System (IPPIS) can curb financial

corruption in the Nigeria public sector.

4. To Examine how Government Integrated Financial

Management Information System (GIFMIS) can curb

corruption in the Nigeria public sector

This paper is presented or divided into five (5) Sections,

section two is the review of related Literature, section three

consists of the methodology while section four and five

comprises the date presentation and analysis.

2. REVIEW OF RELATED LITERATURE

2.1. Conceptual Framework

Financial Management Reforms (FMR) is a set of systems

aimed at producing information, processes and rules that

can help support fiscal policy making as well as provide

instruments for its implementation (IMF e-library).

Omolehinwa and Naiyeju (2015) defines Financial

Management Reforms as a way of handling, recording and

reporting of government financial transaction in public

sector. Financial Management Reforms refers to the set of

laws, rules systems and processes used by Sovereign nations

and sub- national government, to mobilize revenue, allocate

public funds, undertake public spending, account for funds

and audit results.

Some of these reforms that have been embarked upon by the

Nigerian government include: E-payment system, IPPIS, TSA,

GIFMIS, Automated Accounting Transaction Recording and

Transaction (ATRRS) and the National Chart of Accounts

(NCOA). The whole essence or purpose of these Reforms is to

eradicate corruption in public sector spending and revenue

collection. According to Onuora and Appah (2012) Financial

Management Reforms is all about organizing, planning,

procurement and utilization of government financial

resources as well as formulation of appropriate policies to

enable the achievement of societal members’ aspirations. It

is also concerned with an amendments or improvements on

the management of spending, borrowing, revenues, debts,

taxation, foreign exchange system, foreign resources, finance

auditing and level of liquidity in an economy to enable the

achievement of sum stated objectives (Institution of

Economic Affairs, 2002). FMR are very crucial because, it

enhances prudent allocation of financial capital for the

purchase of real capital, leads to optimal management of

inventory, cash and development of appropriate dividends

policies and enables reorganization of financially troubled

organizations.

Adoption of International Public Sector Accounting

Standard (IPSAS) are a set of accounting standard issued by

the IPSAS board for use by public sector entities (e.g. federal,

state local government including agencies, boards and

commissions) around the world in the preparation of

financial statements. It is based on International Financial

Reporting Standard (IFRS) which was issued by

International Accounting Standard Board (IASB). The

standard aimed at improving the Quality of General Purpose

Financial Reporting (GPFR) by public sector entities, leading

to better informed assessments of the resources allocation

decision made by government, thereby increasing

transparency and accountability (Otunla, 2015).

In the same vein, Oghoghomeh and Ijeoma (2014) assures

that the aim of the adoption, in consonance with the global

standards will be beneficial in the improvement of the

Countries Accounting and Financial reporting standard.

IPSAS adoption will be highly beneficial in the following

aspect: improve accountability and transparency, enhance,

quality service delivery, increase cross-border investment

and foreign direct investment, to enhance fiscal operation

report that will increase control of public agencies, secure

political and economic leverage, in line with International

best practice that will ensure comparability, greater

disclosures which provide information for better decision

making and in turn should lead to better use of public

resources, ensure credibility, integrity that will build

confidence in donor agencies, lenders and other

stakeholders, and enhance implements of the Freedom Of

Information (FOI) Act, 2011).

Treasury Single Account (TSA) Oti, Igbeng and Obim

(2016) defined Treasury Single Account as a public

accounting system under which all government income,

receipts and revenue are collected into on singles account,

and payment as well and it is usually maintained by the

country’s central bank. The major aim is to reduce

corruption, ensure proper cash management, eliminate idle

fund and enhance reconciliation of revenue collection and

payment. TSA is a unified structure of government bank

accounts enabling optimal utilization and consolidation of



cash resources, through this linked bank accounts,

government transacts all its payments and receipts, and get a

view of its consolidated cash position at any given time.

For better consolidation of cash balances, Treasury Single

Account (TSA) implementation has commenced in various

federal government Ministries, Department and Agencies

(MDAs) in other to facilitate efficient payment mechanism,

ensure absolute, real-time information on government cash

resources, prepare reliable and accurate cash flow forecasts,

and optimize the cost of government operations. Under TSA,

the cash balances is rolled-up to a single account, instead of

the use of multiple bank account, payments from all

spending units are controlled by TSA. Treasury Single

Account (TSA) is a multiple accounts rolled up to a single

account, not just a single bank account, it is therefore a

unified structure of government bank accounts that gives a

consolidated view of government cash resources. It could be

one account or a set of linked accounts.

Integrated Payroll and Personnel Information System

(IPPIS) The problem and issue of ghost workers are often

seen as the main source of corruption in many countries. In

order to eradicate the ghost workers which seems to be but

difficult, Integrated Payroll and Personnel Information

System (IPPIS) was established. Integrated Payroll and

Personnel Information System (IPPIS) is one of the federal

government Financial Management Reforms initiatives

aimed at improving the management of human resources

and to eliminate fraud in Nigeria Public sector

According to Omolehinwa and Naiyeju (2015) explained

that, IPPIS is a centralized computer based payroll and

management system aimed at elimination of payroll fraud. It

focused on the determination of the actual number of

personnel, total cost of salaries at a glance and ensuring data

integrity so that the personal information is intact and

accurate.

IPPIS department (2015) pointed out that IPPIS had saved

the Federal government of Nigeria billions of naira between

2007 to date, as a result of differences on the personal

budget and the Actual amount paid by IPPIS for the MDAs.

The Integrated Payroll and Personnel Information System

(IPPIS) according to Enakirerhi and Temile (2017) is one of

the Federal government strategic implementation to

digitalize the manual based and files system marred with

corruption, inefficiency and inaccuracy of the number of

personnel in the civil service of Nigeria.

Government Integrated Financial Management

Information System (GIFMIS) The GIFMIS is used to

support the government in all aspects of budget preparation,

execution and management of government financial

resources. GIFMIS an information system that cut across

financial events and sum up financial information (Felix and

Rufus, 2018). It is a set of automation solution that enables

government to monitor plan and execute the budget.

Omolehinwa and Naiyeju (2015) described GIFMIS in its

simple term as an information Technology (IT) based system

for budget management and accounting that the Federal

government of Nigeria implemented to improve public

expenditure management. The aim of government in

introducing GIFMIS is to assist in improving the

performance, management and outcomes of public financial

management by addressing the vital public financial

management lapses and shortcomings which includes;

failure to enact the budget before the start of the financial

year, lack of effective cash management, lack of integration

between different financial management processes and

functions and preparation of budget that is not based on

realistic forecasts of cash availability.

According to Adedey (2015) GIFMIS are computer-based

systems that automate and store key financial information in

large organizations like multinational corporations, large

non-profit institutions and Government of which the goal is

to increase access to information costs depending on the size

and needs of the organization using the system. It can be off-

the-shelf software or a custom-made system. GIFMIS

consists of Budget Preparation, its payroll and pension,

Budget execution, Assets management.

Corruption

Corruption is a term and a worldwide phenomenon that

seems to have come to stay, an indomitable perpetual cancer

worm. Waziri (2010) etymologically explained that

corruption as a word originated from the Greek word

“Corruptus” which means an aberration or a misnomer.

Different scholars/authors had described and defined

corruption using different terminologies. It is as old as

human race and its government. It affects all parts of the

society and it is a great obstacle and hindrance to social and

economic development. It is the most popular discussed

issue (Dada, 2014).

According to Dada (2014) Corruption as a concept is difficult

to define due to its multidimensional and multidisciplinary

nature. A single definition is inadequate to describe the

concept appropriately. Corruption takes various forms and

contexts, a multifaceted and complex phenomenon with

multiple effects and causes. According to Oxford Advanced

Learner’s Dictionary (2005) Corruption is broadly described

as the act or effect of making someone change from moral to

immoral standard of behavior; dishonest or illegal behavior

especially of people in authority. In this definition corruption

is linked with two important variables, morality and

authority.

Corruption is the abuse of power for private gain as defined

by the World Bank and United Nation (UN) (2012). Fanda

(2010) defines Corruption as a change or pervasion from the

general accepted laws or rules from selfish gain. Mcshane

and Nilsson (2010) noted that Corruption is when a holder

of public office motivated by private gain gives preferential

treatment that is not officially approved. Dong (2011)

defines public section corruption as a misuse of public office

for private benefit.

Transparency Intentional defines Corruption as the abuse of

entrusted power for private gain.it is the use of official

position or public office to obtain personal or private gain, as

cited in Enofe, Afiamgbe and Agha (2017). According to

Usman (2013) Corruption can also mean theft of public trust,

whether the concerned individual is nominated, elected,

appointed or selected. It does not count if the person holds

office or not, anybody can be corrupt. In his view Agbu

(2003) pointed out that public office benefits can be abused

through nepotism, patronage, diversion of public resources,

theft of state assets, even if no bribery occurred.



2.2. Theoretical Framework

This study is anchored on Institutional theory. According to

Kraft's Public Policy (2007) Institutional Theory is "Policy-

making that emphasizes the formal and legal aspects of

government structures." Institutional theory is a theory on

the deeper and more resilient aspects of social structure. It

considers the processes by which structures, including

schemes; rules, norms, and routines, become established as

authoritative guidelines for social behavior. Different

components of institutional theory explain how these

elements are created, diffused, adopted, and adapted over

space and time; and how they fall into decline and disuse

(Scott, 2004). Rowan examined the growth of three

administrative services in California public schools (school

health, psychology, and curriculum) from the standpoint of

institutional theory. He found that when there is a high level

of consensus and cooperation within the institutional

environment, diffusion of innovative structures is steady and

long-lasting. However, when the institutional environment is

contentious and unfocused, adoption of innovative

structures is slow and tentative. Tolbert and Zucker

extended Rowan's findings by evaluating the rate of

adoption of civil service organizations in the United States

from 1880-1935. Their results strongly support the

institutional theories outlined above. Recent developments

in Nigeria public accounting framework are the new

accepted behaviours, rules, norms that need to be adhered to

and the question prevalent in this theory and applied here is

whether these recent reforms (financial management

reforms) are due to normative or regulatory practices?

Institutional theory addresses practices of financial

management reforms such as IPSAS, TSA, IPPIS and GIFMIS

etc., these are the subject of the current trend in the public

sector, of which their adoption can enhance the technical

efficiency in the organization or institution. Also it results in

legitimization of the standard practices, and its absence will

leave the organization to be termed negligent, irrational and

corrupt. To increase homogeneity in organizational structure

within Nigeria MDAs and across countries globally, is the

utmost effect of these reforms, therefore this reforms have

been thought to promote efficiency, effectiveness,

accountability, transparency and curb corruption.

2.3. Empirical Framework

Different researchers have conducted researches by using

different variables to assess how corruption can be reduced

in the Nigeria public sector. In their study Iheduru and

Amafule (2014) examined the use of electronic accounting

system (of which GIFMIS and IPPIS are handy) as a tool for

checkmating corruption in Nigeria MDAs. The study used

both primary and secondary sources for its data collection.

The secondary data was used to create a theoretical

background for the study while the primary data on the

other hand were sourced via a well-structured questionnaire

(survey research tool) administered on fourteen (14)

selected government-owned ministries (eight federally

owned and six state ministries). Participants in the survey

consist of five senior staff randomly selected from each of

the fourteen ministries, bringing the total sampled

respondents to seventy (70). The study reveals that the

installation and/or activation of a well-designed electronic

accounting information system (such as IPPIS and GIFMIS) in

the structure of the nation’s public sector operation will

amount to a veritable tool in checkmating corruption in the

system and thus serves as a catalyst in engendering

economic development in the economy. The study then

recommended among other things that the government

should embrace and bring to bear a well-designed e-

accounting information system to cover such areas like

budgeting system (from formulation, approval,

implementation, disbursement, etc.) which is addressed by

GIFMIS, payrolls which is addressed by IPPIS, pensions

matters also addressed by IPPIS, and others.

Enofe, Afiangbe and Agha (2017) examined financial

management reforms and corruption in Nigeria public

sector. A survey research design was adopted in the study

and a sample of ninety (90) respondents which consist of 40

staff from federal MDAs, 30 from Edo state MDAs and 20

from local government MDAs. The study employed ordinary

least square (OLS), using SPSS in analyzing the bio-data and

Eview8 in analyzing the research questions as the statistical

technique or tool. The study found that Treasury Single

Account (TSA); adoption of International Public Sector

Accounting Standards (IPSAS); and Government Integrated

Financial Management Information System (GIFMIS) all had

a positive relationship with Corruption (COR) but at

different level of significance while Integrated Payroll and

Personnel Information System (IPPIS) had a negative

relationship. In their recommendation the government was

advised to implement IPPIS to its fullest to enhance its

potentials of corruption reduction.

Osakede, Ijimakinwa, Adesanya, Ojo, Ojikutu, and Abubarka

(2015) studied Corruption in the Nigeria Public Sector: an

Impediment to Good Governance and Sustainable

Development. The paper used qualitative approach to

analyses issues by adopts secondary data, the paper

observes that Nigeria is faced with myriad of dilemmas

Prominent among which are poverty, insecurity, kidnapping,

ethno-religious crisis, bad governance, and many more, these

problems can be attributed to corruption. they suggests that

government should urgently initiate moves to work with the

National Assembly to review Nigeria constitution and legal

order so as to empower the anti-corruption agencies to work

assiduously without being molested or interfered with by

the government. It was concludes that entrenchment of

constitutional principle that will allow citizens in their

respective constituencies the power to recall at any point in

time any elected official who has been found by due process

to corrupt, abuse or betray the people mandate.

Nweze (2013) observes that adoption and proper

implementation of IPSAS would create avenue for reduction

in case of manipulation of financial resources in the public

sector since one of the objectives of IPSASs is to engender

transparency and accountability in the operation of public

entities. It was also added that full and proper

implementation of IPSAS pave way for Related Party

Disclosure which by extension check cases of corruption

through effective, efficient, and transparent financial

reporting in Nigeria MDAs and curb corruption. Enakirerhi

and Temile (2017) Accurate and reliable personnel

information, reduction or elimination of corrupt and sharp

practices, facilitation of modern scientific and accurate

budgeting and forecasting are the major benefits of IPPIS.

Weeding out ghost workers and saving billions in cost to the

economy through the implementation of the IPPIS (Idris,

Adaja & Audu, 2015), & Mede, 2016). Felix, and Rufus,



(2018), Akhalumeh and Ohiokha (2018) noted that with

GIFMIS, there has been an appreciable reduction in

corruption, financial irregularities and leakages with the

attendant improvement in transparency and accountability

in the management of government funds.

3. METHODOLOGY

This paper was a Survey Research and adopts a primary

approach in gathering its data These questions were

structured on a five point likert scale, thus: Strongly Agree

(SA), Agree (A), Undecided (U), Disagree (D) and Strongly

Disagree (SD). The population of the study comprise of four

hundred and thirty six (436) Accountants and Auditors in

Anambra state MDAs. The sampling was done by using

Stratified Random technique. The study considered a total

number of nineteen MDAs in Anambra state. Sample size of

three hundred and twenty four (324) Respondents from

Accountants and Auditors MDAs in Anambra state. The study

employed ordinary least square (OLS) regression analysis,

with the aid of Eview software 8.0; we therefore subjected

our data to a diagnostic test using descriptive statistics

analysis, to further check for the normality of our variables, a

Jarque-Bera normality test was used, in examining the

association among the variables, we employed the Pearson

correlation coefficient (correlation matrix), to examine the

impact relationships between the dependent variables

(CORUP) and our independent variables and to also test our

formulated hypotheses, we used Multicolinierity test

Model Specification

The following models were formulated for this study:

Model 1

CORi = λ0 +λ1IPSASi +λ2TSAi + λ3IPPISi + λ4GIFMISi + μ…………….......... (1)

Model 2

CORi = λ0 +λ1IPSASi * λ2TSAi + λ3IPPISi * λ4GIFMISi + λ3IPSASi * λ4IPPISSi + λ3TSAi * λ4GIFMISi +μ…………….......... (2)

Where:

IPSAS= International Public Sector Accounting Standard

TSA= Treasury Single Account

IPPIS= Integrated Payroll and Personnel Information System

GIFMIS= Government Integrated Financial Management Information System

λ0 = constant

Parameters: λ 1, λ 2, λ 3, λ 4 represent the co-efficient.

Apriority sign: λ 1˂0, λ 2 ˂ 0, λ 3 ˂ 0, λ 4 < 0

4. PRESENTATION AND ANALYSIS OF DATA

4.1. Presentation of Data

In this study in which we investigated the financial management reform and curbing corruption in Nigeria public sector, data

were generated through the administration of questionnaire to our respondents. The data generated is presented as appendix

1. In other to ensure the validity and the reliability of our data, we therefore subjected our data to a diagnostic test using

descriptive statistics analysis and the result of our test is presented in our table 1.

Demographic Analysis of Respondents

Table 4.1.1: Respondents Sex Distribution

Frequency Percentage Valid Percentage Cumulative Percentage

Male 168 51.9 51.9 51.9

Female 156 48.1 48.1 100

Total 324 100 100

Source: Researcher’s field work/computation (2019).

The table 4.1.1 above shows that 168 of the respondents were male while 156 were female given a percentage of 51.9% and

48.1% respectively.

Table 4.1.2: Respondents Age Distribution


20-25 32 9.9 9.9 9.9

26 - 30 68 21,0 21,0 30.9

31 - 35 64 19.8 19.8 50.7

36 - 40 87 26.8 26.8 77.5

40 & above 73 22.5 22.5 100

Total 324 100 100


Above table shows the age distribution of the respondents. 32 of the respondents representing 9.9% of the total respondents

were between the ages of 20-25 years, 68 were between 26-30 years, 64 were between 31-35 years, 87 were between 36 - 40

while 73 respondents were 41 years and above. This represents 21.0%, 19.8%, 26.8% and 22.5% respectively.



Table 4.1.3: Educational Qualification Distribution


ND/NCE 43 13.3 13.3 13.3

B.Sc/B.A 196 60.5 60.5 73.8

M.Sc/PhD 64 19.7 19.7 93.5

Others 21 6.5 6.5 100

Total 324 100 100


The Table above shows the educational qualification distribution of the respondents and its percentages.

Table 4.1.4: Employment/Professional Status Distribution


Local Government Auditor 96 29.6 29.6 29.6

State Government Auditor 43 13.3 13.3 43.9

Accountant 185 57.1 57.1 100

Total 324 100 100


Table above shows the employment status of the respondents. 36 respondents were under the employment of the local

government, 207 were under state government employment while 81 were federal government employees. This represent

11.1%, 63.9% and 25.0% respectively.

Table 4.1.5: DESCRIPTIVE STATISTICS OF OUR VARIABLES

COR IPSAS TSA IPPIS GIFMIS

Mean 68.40000 68.40000 68.40000 68.40000 68.40000

Median 59.50000 49.50000 73.50000 78.50000 82.50000

Maximum 147.0000 201.0000 137.0000 206.0000 109.0000

Minimum 4.000000 2.000000 4.000000 3.000000 0.000000

Std. Dev. 46.38670 60.88592 39.83439 48.63440 34.57471

Skewness 0.139332 0.785306 -0.152455 0.779325 -1.095996

Kurtosis 1.749152 2.578956 2.286387 4.254929 2.718542

Jarque-Bera 1.368561 2.203414 0.501845 3.336866 4.070043

Probability 0.050445** 0.0332303** 0.778083 0.0188542** 0.0130678**

Sum 1368.000 1368.000 1368.000 1368.000 1368.000

Sum Sq. Dev. 40882.80 70434.80 30148.80 44940.80 22712.80

Observations 20 20 20 20 20

Source: Researcher’s computation (2019): Note *1% level of significance, **5% level of significance, ***10% level of

significance.

Table 4.1.5 shows the mean (average) for each of the variables, their maximum values, minimum values, standard deviation

and Jarque-Bera (JB) statistics (normality test).The result in Table 4.1.6 provides some insight into the nature of the selected

variables used in this study. Firstly, the large difference between the maximum and minimum values of IPPIS, IPSAS, TSA and

GIFMIS showed that most of our respondents were of the opinion that financial management reforms proxy as, IPSAS, TSA,

IPPIS and GIFMIS with the values of (201,0000, 137,0000, 206,0000 and 109,0000 respectively) can bring about change in the

level of financial corruption in Nigeria public sector. The table also shows that most of our respondents were of the opinion that

on the average, IPSAS, TSA, IPPIS and GIFMIS when jointly applied can result to about 68.4% reduction in financial corruption

in public sectors in Nigeria. This is quite encouraging and therefore justifies the reason for this study as we expect that IPSAS,

TSA, IPPIS and GIFMIS when jointly applied in the system will help to curb financial corruption in Nigeria. We also observed

that on the average IPSAS value was 68.40000, the maximum value was 201.0000 while the minimum stood at 2.000000. This

shows that most respondents were of the opinion that financial management reform through IPSAS can curb about 68.4%

financial corruption in public sector in Nigeria. Similarly, TSA variable, with the average value of 368.40000, maximum value of

137.0000 and minimum value of 4.000000, is an indication that on the average, most respondents interviewed were of the

opinion that the introduction of TSA in the Nigeria public sector can bring about reduction in the level of financial corruption to

about 68.4%. Similarly, IPPIS and GIFMIS were found to be same as others earlier discussed in reducing financial corruption in

the public sectors in Nigeria.

Furthermore, the table also shows a wide variation of standard deviation values of IPSAS, TSA, IPPIS and GIFMIS to be

60.88592, 39.83439, 48.63440 and 34.57471 respectively. This implies that perception of the respondents as regards to

financial management reforms are widely spread among the variables used for this study and that none of the variables

dominated the opinion of the respondents.



Lastly, in Table 4.1.5, the Jarque-Bera (JB) which test for normality or the existence of outlier or extreme values among the

variables shows that most of the variables used for this study are normally distributed at 5% level of significance except TSA.

Hence indicating the absence of outliers, thus suitable to be analyzed using Ordinary Least Square regression method or

Generalized Least Square Panel Regression method and the result fit for generalization in the system.

4.2. Further Test to Proof Normality Nature of our Data

To further check for the normality of our data gathered, a deeper Jarque-Bera normality test was subjected on our data

gathered for this study to test its fit for the study and the result is presented as a graph in figure 1 below.

Fig. 4.2.1: Graph Presentation of Jargue- Bera Deeper Normality Test Result

0

4

8

12

16

20

24

-2 -1 0 1 2 3 4 5

Series: Standardized ResidualsSample 2011 2017Observations 140

Mean -1.43e-16Median -0.501225Maximum 5.559035Minimum -1.996361Std. Dev. 1.446289Skewness 1.374492Kurtosis 4.970923

Jarque-Bera 66.74179Probability 0.000000

Source: Researcher’s Computation (2019) using Eview software 8.0

The graph result above shows that the variables used for this study, with the Jargue-Bera value of 66.74179 and probability

value of 0.00, are normally distributed at 1% level of significance and therefore fit to be used for this study.

4.3. Correlation Analysis

In examining the association among the variables, we employed the Pearson correlation coefficient (correlation matrix) and the

results are presented in Table 4.3.1.

Table 4.3.1: Pearson Correlation Matrix of the both Explanatory and Dependent Variables Used for the Study.

COR IPSAS TSA IPPIS GIFMIS

COR 1.00 0.94 0.84 0.76 0.67

IPSAS 0.94 1.00 0.73 0.74 0.51

TSA 0.84 0.73 1.00 0.59 0.80

IPPIS 0.76 0.74 0.59 1.00 0.64

GIFMIS 0.65 0.51 0.80 0.64 1.00

Source: Researcher’s computation (2019)

The use of correlation matrix in most regression analysis is to check for multi-colinearity and to explore the association

between the explanatory variables and the dependent variable. Table 4.3.1focuses on the correlation between financial

corruption, proxy as COR and the independent variables which include, IPSAS, TSA, IPPIS and GIFMIS. The findings from the

correlation matrix table shows that most of our explanatory variables were positively and moderately correlated with our

dependent variable, (COR, TSA=0.84: COR, IPPIS=0.73; and COR; GIFMIS=0.65 except IPSAS which shows strong and positive

correlation with COR at 0.94. However, no two explanatory variables are perfectly correlated, which would have resulted into

dropping of one of such explanatory variable. Therefore, in checking for multi-colinearity, we notice that no two explanatory

variables were perfectly correlated. This means that there is the absence of multi-colinearity problem in our model. Multi-

colinearity between explanatory variables may result to wrong signs or implausible magnitudes in the estimated model

coefficient, and the bias of the standard errors of the coefficients.

4.4. Testing of Specific Objectives Formulated for this Study

In order to test our specific objectives for this study, the generated data were analyzed and presented hereunder. Notably, out

of the three hundred and twenty eight copies of questionnaire administered, four copies were not returned; hence, the

returned copies which represent 98.8% response rate were used for the data analysis. The results are as shown in the tables

below;


@ IJTSRD | Unique Paper ID – IJTSRD29255 | Volume – 3 | Issue – 6 | September - October 2019 46

4.4.1. Analysis of Specific Objective One: International Public Sector Accounting Standards (IPSAS) and Financial

Corruption in Nigeria.

Table 4.4.1: IPSAS adoption and curbing Financial Corruption

a. SA

5

A

4

U

3

D

2

SD

1

N

x

Decision

i. The adoption of IPSAS will enhance comparability and

international best practice 105 186 2 32 17 342 3.42 Accept

ii. The adoption of IPSAS will increase the level of

accountability and transparency in public sector in Nigeria. 96 151 8 59 28 342 3.42 Accept

iii.

Adoption of IPSAS will ensure credibility and integrity that

will build confidence in donor agencies, lenders and other

stakeholders

98 201 3 30 10 342 3.42 Accept

iv. Adoption of IPSAS will enhance public –private partnership 87 117 17 81 40 342 3.42 Accept

Source: Field Survey, 2019.

Table 4.4.1 addressed the IPSAS adoption and curbing financial corruption among workers in public sectors in Nigeria. The

table reveals that the IPSAS adoption will enhance comparability of records as well as instituting international best practices in

public sectors in Nigeria as indicated by the mean rating of 3.42. The respondents were of the opinion also that IPSAS adoption

will increase the level of accountability and transparency of accounting records, ensures credibility integrity of financial

records which will result into boosting the confidence of agency donors in Nigeria as well as enhancing more public- private

partnership relationships among public sectors in Nigeria, as their mean rating was 3.42 in all, as shown above in table 4.4.1,

which is above the mean average of 3.0. Therefore, the results indicate that to a great extent, that IPSAS adoption in public

sector in Nigeria will result into more financial records comparability, more accountability, more credibility and integrity of

records and will encourage more public –private partnership relationship among public sectors in Nigeria.

4.4.2. Analysis of Objective Two: Treasury Single Account (TSA) and Financial Corruption in Nigeria

Table 4.4.2: Adoption of Treasury Single Account (TSA) and Financial Corruption in Nigeria

a. SA

5

A

4

U

3

D

2

SD

1

N

x

Decision

i.

TSA will reduce idle cash balance that is often accumulated

in accounts of Ministries, Departments and Agencies

(MDAs) in commercial banks by investing any surplus.

101 86 8 78 69 342 3.42 Accept

ii. TSA will ensure effective monitoring and reconciliation of

government accounts. 94 137 4 57 50 342 3.42 Accept

iii. TSA will enthrone centralized, transparent and

accountable revenue management. 86 99 11 81 65 342 3.42 Accept

iv.

TSA will help eliminate operational inefficiency and costs

associated with maintaining multiple accounts across

multiple financial institutions.

102 136 6 48 50 342 3.42 Accept

Table 4.4.2 addressed the perception of respondents on the adoption of treasury single account (TAS) and curbing financial

corruption in public sectors in Nigeria and the result shows that adoption of TSA in public sectors in Nigeria will mop up excess

cash balances often accumulated in accounts of MDAs in Nigeria as its mean rating is 3.42, which is above the average mean of

3.0. The table also shows that adoption of TSA in public sector in Nigeria will also ensure effective monitoring reconciliation of

government account, enthrone centralized, transparent and accountable revenue management, and will also help to eliminate

operational inefficiencies and cost associated with maintaining multiple accounts across multiple financial institutes, as their

average value is 3.42, which is above the mean rating of 3.0 as shown in table 4.

4.4.3. Analysis of Specific Objective Three: Integrated Payroll and Personnel Information System (IPPIS) and

Financial Corruption in Nigeria Public Sectors

Table 4.4.5: Adoption of Integrated Payroll and Personnel System (IPPIS) and Financial Corruption in Nigeria

a. SA

5

A

4

U

3

D

2

SD

1

N

x

Decision

i. IPPIS is a necessity in the operations of government

payroll in this modern era. 79 84 7 79 93 3442 3.42 Accept

ii.

IPPIS will eliminate payroll fraud such as multiple

payment of emoluments to single employee or payment

of monthly salary to a non-existent employee.

76 110 20 41 95 342 3.42

Accept

iii. IPPIS will enhance prompt deduction and remittance to

accounts of all third parties payments such as Pension

Fund Administrators (PFAs), National Health Insurance

Scheme (NHIS), Pay As You Earn (PAYE),

103 206 3 16 14 342 3.42 Accept

iv. IPPIS is yet to be fully in operation in most government

Ministries, Departments and Agencies (MDA).

78 70 12 84 98 342 3.42 Accept




Table 4.4.3 treats the perception of respondents on the adoption of Integrated Payroll and Personnel Information System

(IPPIS) and curbing financial corruption in public sectors in Nigeria and the result shows that adoption of IPPIS in public

sectors in Nigeria is a necessity in the operation of government payments in this modern era, as its mean rating is 3.42, which is

above the average value of 3.0. The table also shows that adoption of IPPIS in public sectors in Nigeria will eliminate frauds

such as multiple payment of emoluments to a single employee and also enhance prompt deductions and remittance to accounts

of third parties. However, majority of our respondents were of the opinion that IPPIS is yet to be fully implemented in most

public sectors in Nigeria.

4.4.4. Analysis of Specific Objective Four: Government Integrated Financial Management Information System

(GIFMIS) and Financial Corruption in Nigeria Public Sectors

Table 4.4.4: Adoption of Government Integrated Financial Management Information System (GIFMIS) on Financial

Corruption in Nigeria

a. SA

5

A

4

U

3

D

2

SD

1

N

x

Decision

i. In this modern era, GIFMIS is a necessity in the operations of

government activities and financial management. 75 86 7 78 96 342 3.42 Accept

ii.

The apparent lack of accountability and corruption

perpetrated by some public office holders is linked to the

absence of a well-designed GIFMIS in the operational structure

of the nation’s public sector financial management.

67 93 5 84 93 342 3.42

Accept

iii.

The installation of a well-designed electronic accounting

information system such as GIFMIS in the nation’s public

sector financial management can checkmate corruption in the

economy.

88 91 9 65 89 342 3.42 Accept

iv.

The present operation of the Nigerian public sector has not

fully activated electronic accounting information

dissemination approach such as GIFMIS in the entire financial

management system.

81 109 0 56 96 342 3.42 Accept


Table 4.4.4 investigated the perception of respondents on the adoption of Government Integrated Financial Management

Information System (GIFMIS) and curbing financial corruption in public sectors in Nigeria and the result shows that adoption of

GIFMIS in public sectors in Nigeria is a necessity in the operation of government activities in this modern era, as its mean rating

is 3.42, which is above the average value of 3.0. The table also shows that lack of accountability and corruption perpetrated by

some public office holders is linked to absence of a well-designed GIFMIS in public sectors in Nigeria. Similarly, the table also

shows that installation of GIFMIS can help to checkmate corruption in public sectors. However, majority of our respondents

were of the opinion that GIFMIS is yet to be fully implemented in most public sectors in Nigeria.

4.5. Test of Hypotheses Formulated

However, to examine the impact relationships between the dependent variables (CORUP) and our independent variables and to

also test our formulated hypotheses, we used an Ordinary Least Square (OLS) regression analysis. The panel interaction based

OLS regression results obtained is presented and discussed below while detailed result is presented as appendix 2.

4.5.1. MODEL 1

CORi = λ0 +λ1IPSASi +λ2TSAi + λ3IPPISi + λ4GIFMISi + μ……………..........(1)

Model 1 formulated was analyzed using both Ordinary Least Square Regression Method and Fixed Effect Regression Method

and the results displayed by both methods were the same (see appendix 2 for the detailed result). However, for the purpose of

this study, we interpreted the Ordinary Least Square (OLS) result as this is presented in table 4.5.1.

Table 4.5.1: COR Regression Result

Dependent Variable: COR

Method: Panel Least Squares

Date: 05/27/19 Time: 14:58

Sample: 2015 2019

Periods included: 5

Cross-sections included: 4

Total panel (balanced) observations: 20

Variable Coefficient Std. Error t-Statistic Prob.

C 8.749839 5.449424 1.605645 0.1343

IPSAS 0.467065 0.081595 5.724200 0.0001

TSA 0.456312 0.155373 2.936884 0.0124

IPPIS 0.090349 0.086643 1.042777 0.3176

GIFMIS -0.141649 0.182601 -0.775726 0.4529



Effects Specification

Cross-section fixed (dummy variables)

R-squared 0.972387 Mean dependent var 68.40000

Adjusted R-squared 0.956279 S.D. dependent var 46.38670

S.E. of regression 9.699217 Akaike info criterion 7.671142

Sum squared resid 1128.898 Schwarz criterion 8.069435

Log likelihood -68.71142 Hannan-Quinn criter. 7.748893

F-statistic 60.36822 Durbin-Watson stat 2.211562

Prob(F-statistic) 0.000000

Source: Researchers computation (2019): Note: * 1%, ** 5%, ***10% level of significance

In testing for cause-effect relationship between the dependent and independent variables in COR model, we reported the OLS

pooled regression results in Table 4.5.1. In table 4.5.1, we observed that from the COR result, the R-squared and adjusted R-

squared values were 0.97 and 0.96 respectively. This indicates that all the independent variables jointly explain about 97% of

the systematic variations in financial corruption measured as COR of our variables.

Test of Autocorrelation: Using Durbin Watson (DW) statistics which we obtained from our regression result in table 4.5.1, it is

observed that DW statistic is 2.211562 which is approximately 2, agrees with the Durbin Watson rule of thumb. Showing that

our data is free from autocorrelation problem and as such fit for the regression result to be interpreted and result relied on.

Akika Info Criterion and Schwarz Criterion which are 7.671142 and 8.069435 respectively further strengthen the fitness of our

regression result for reliability as they confirm the goodness of fit of the model specified. In addition to the above, the specific

findings from each explanatory variable are provided as follows:

Integrated Public Sector Accounting Standards(IPSAS) and Financial Corruption in Nigeria Public Sector, based on the t-

statistics value of 5.724200 and p-value of 0.00 was found to have a positive influence on financial corruption and this influence

is statistically significant since its p-values is less than 0.05. This therefore suggests that we should reject hypothesis one (Ho1)

which states that the adoption of International Public Sector Accounting Standard (IPSAS) cannot significantly curb financial

corruption, to accept our alternative hypothesis. This means that on the basis of the use of financial reforms to curb financial

corruption in Nigeria public sector, the introduction of IPSAS in the system is perceived to have a positive significant effect,

thereby will help to curb financial corruption in the system.

Treasury Single Account (TSA) and Financial Corruption in Nigeria Public Sector, based on the t-statistics value of

2.936884 and p-value of 0.012 was found to have a positive significant influence on financial corruption. And this influence is

statistically significant at 5% level as the p-values is more than 0.05. This therefore suggests that we should reject hypothesis

two (Ho2) which states that the adoption of the Treasury Single Account (TSA) can significantly curb financial corruption. This

means that on the basis of that use of TSA to curb financial corruption in Nigeria public sector, the introduction of TSA in the

system has a positive and significant effect, thereby perceived to help to curb financial corruption in the system. This might be

true in the sense that since its inception, TSA has help to mop up excess cash float in MDAs, enhance effective monitoring and

reconciliation of government revenues, and reduce operational inefficiency and cost associated with keeping multiple

accounting systems. This means that on the basis of the use of financial reforms to curb financial corruption in Nigeria public

sector, the introduction of TSA in the system is perceived to have a positive significant effect, thereby will help to curb financial

corruption in the system.

Integrated Payroll and Personnel Information System(IPPIS) and Financial Corruption (COR), based on the t-statistics

value of 1.042777 and p-value of 0.32 was found to have a positive influence on financial corruption(COR).However, this

influence is not statistically significant since its p-values is more than 0.10. This therefore suggests that we should accept our

null hypothesis three (Ho3) which states that Integrated Payroll and Personnel Information System (IPPIS) cannot significantly

curb financial corruption. This means that on the basis of the use of financial reforms to curb financial corruption in Nigeria

public sector, IPPIS is perceived to have no significant effect and thus its introduction does not helps to reduce financial corrupt

practices in Nigeria public sector.

Government Integrated Financial Management Information System(GIFMIS) and Financial Corruption (COR), based on

the t-statistics value of -0.775226 and p-value of 0.45 was found to have a negative influence on financial

corruption(COR).However, this influence is not statistically significant since its p-values is more than 0.10. This therefore

suggests that we should accept our null hypothesis four (Ho4) which states that Government Integrated Financial Management

Information System cannot significantly curb financial corruption. This means that on the basis of the use of GIFMIS to curb

financial corruption in Nigeria public sector, GIFMIS is perceived to have no significant effect and thus its introduction does not

helps to reduce financial corrupt practices in Nigeria public sector.

4.5.2. MODEL 2: Interaction Model

To test the variables we interacted in our model 2, which we specified in chapter three as follows:

CORi = λ0 +λ1IPSASi * λ2TSAi + λ3IPPISi * λ4GIFMISi + λ3IPSASi * λ4IPPISSi + λ3TSAi * λ4GIFMISi μ……………..........(2)

We used multiple regression analysis which we conducted with the data gathered for this study to investigate the joint effect of

our variables on curbing financial corruption in public sectors in Nigeria and the result is presented in table 8 while the

detailed result is presented as an appendix 3.



Table 4.5.2: Interaction of Financial Reform variables used for this Study

Cross-sections included: 4

Total panel (balanced) observations: 20

Swamy and Arora estimator of component variances

Variable Coefficient Std. Error t-Statistic Prob.

C 24.37090 13.39631 1.819225 0.0865

IPSAS*TSA 0.005704 0.000733 7.784062 0.0000

IPPIS*GIFMIS 0.001367 0.000902 1.515326 0.1481

IPSAS*IPPIS 0.002416 0.000426 5.675045 0.0000

TSA*GIFMIS 0.005723 0.000989 5.785610 0.0000

In table 8, the financial reform variable used for this study which includes IPSAS, TSA, IPPIS, and GIFMIS were interacted and

the results obtained were as follows:

Interaction Between Integrated Public Sector Accounting Standards (IPSAS) and Treasury Single Account and

Financial Corruption in Nigeria Public Sector(IPSAS*TSA) based on the t-statistics value of 7.784062 and p-value of 0.00

was found to have a positive influence on financial corruption and this influence is statistically significant at 1% level since its

p-values is within 0.00. The implication of this result is that when trying to look for financial reforms that can bring instant

reduction in financial corruption of a system, a combination of the use of IPSAS and TSA should be used as its combination can

go a long way in curbing financial corruption in a system. Therefore, on the basis of the use of financial reforms to curb financial

corruption in Nigeria public sector, the introduction of IPSAS and TSA jointly in such a system have a positive significant effect,

thereby will help to curb financial corruption in such a system.

Interaction between Integrated Payroll and Personnel Information System (IPPIS) and Government Integrated

Financial Management Information System (GIFMIS), and Financial Corruption in Nigeria Public Sector (IPPIS*GIFMIS),

based on the t-statistics value of 1.515326 and p-value of 0.15 was found to have a positive influence on financial corruption.

Although, this influence is not statistically significant in influencing financial corruption in Nigeria as its p-values is more than

10%.

The implication of this result is that when trying to look for financial reforms that can bring instant reduction in financial

corruption of a system, a combination of IPPIS and GIFMIS should not be used alone as its combination cannot reduce financial

corruption in a system, alone, even though they have positive influence on it. Therefore, on the basis of the use of financial

reforms to curb financial corruption in Nigeria public sector, the introduction of IPPIS and GIFMIS will not give a statistically

significant result in curbing financial corruption in the system.

Interaction Between International Public Sector Accounting Standards (IPSAS) and Integrated Payroll and Personnel

Information System (IPPIS), and Financial Corruption in Nigeria Public Sector (IPSAS*IPPIS), based on the t-statistics

value of 5.675045 and p-value of 0.00 was found to have a positive influence on financial corruption and this influence is

statistically significant at 1% level since its p-values is within 0.00. The implication of this result is that when trying to look for

financial reforms that can bring instant reduction in financial corruption of a system, a combination of IPSAS and IPPIS should

be used as its combination can go a long way in curbing financial corruption in a system. Therefore, on the basis of the use of

financial reforms to curb financial corruption in Nigeria public sector, the introduction of IPSAS and IPPIS jointly in such a

system have a positive significant effect, thereby will help to curb financial corruption in such a system.

Interaction Between Treasury Single Account (TSA) and Government Integrated Financial Management Information

System(GIFMIS) and Financial Corruption in Nigeria Public Sector (TSA*GIFMIS), based on the t-statistics value of

5.785610 and p-value of 0.00 was found to have a positive influence on financial corruption and this influence is statistically

significant at 1% level since its p-values is within 0.00. The implication of this result is that when trying to look for financial

reforms that can bring instant reduction in financial corruption of a system, a combination of TSA and GIFMIS should be used as

its combination can go a long way in curbing financial corruption in a system. Therefore, on the basis of the use of financial

reforms to curb financial corruption in Nigeria public sector, the introduction of TSA and GIFMIS jointly in such a system have a

positive significant effect, thereby will help to curb financial corruption in such a system.

4.6. Discussion of Results

This study investigated the financial management reform

and curbing financial corruption in Nigeria public sector.

Using pooled data, the data generated were subjected to

different statistical tests such as descriptive statistics,

correlation analysis, jargua-Bera normality test, and auto

correlation test. The data gathered were finally analyzed

using ordinary Least Square (OLS) regression analysis. The

descriptive statistics revealed the individual characteristics

of the variables used in this study were normally distributed

while the regression results obtained were as follows:

International Public Sector Accounting Standards

(IPSAS) and Financial Corruption in Nigeria Public

Sector,

The Ordinary Least Square result shows that International

Public Sector Accounting Standards (IPSAS) have a positive

influence in curbing financial corruption among public

sectors in Nigeria. This finding supports our aprori

expectation as we expect that the introduction of IPSAS into

public sector management in Nigeria will lead to the curbing

of financial corruption in the system. Also this findings

agrees with the findings of Enofe, Afiamghe and Agha (2017),



Ijeoma and Oghoghomeh (2014), Ademola, Adegoke, and

Oyeleye, (2017). Similarly, when we went further to interact

IPSAS with other financial reform variables such as Treasury

Single Account (IPSAS*TSA) on one hand and Integrated

Payroll and Personnel Information System (IPSAS*IPPIS) on

the other hand, the results still shows that they both had

significant positive effect in curbing financial corruption in

the system.

Treasury Single Account (TSA) and Financial Corruption

in Nigeria Public Sector,

Furthermore, our Ordinary Least Square result also shows

that Treasury Single Account (TSA) have a positive influence

in curbing financial corruption among public sectors in

Nigeria. This finding supports our aprori expectation as we

expect that the introduction of TSA into public sector

management in Nigeria will lead to the curbing of financial

corruption in the system. More so this findings agrees with

the findings of Enofe, Afiamghe and Agha (2017), Akujuru

and Enyioko (2017). Similarly, when we went further to

interact TSA with other financial reform variables such as


(IPSAS*TSA) on one hand and Government Integrated

Financial and Management Information System

(TSA*GIFMIS) on the other hand, the results still shows that

they both had significant positive effect in curbing financial

corruption in the system.

Integrated Payroll and Personnel information System

(IPPIS) and Financial Corruption in Nigeria Public

Sector,

In addition, the regression result also shows that Integrated

Payroll and Personnel Information System (IPPIS) have a

positive but insignificant influence in curbing financial

corruption among public sectors in Nigeria. This finding

disagrees with our aprori expectation as we expect that the

introduction of IPPIS into public sector management in

Nigeria will lead to the curbing of financial corruption in the

system. Also this finding agrees with the findings of Idris,

Adaja and Audu (2015), Enakirerhi and Temile (2017), Mede

(2016). And negates the findings of Enofe, Afiamghe and

Agha (2017). Similarly, when we went further to interact

IPPIS with other financial reform variables such Government

integrated Financial Management Information System

(IPPIS*GIFMIS), the result still shows insignificant positive

effect on curbing financial corruption in the system.

Government Integrated Financial and Management

Information System (GIFMIS) and Financial Corruption

in Nigeria Public Sector,

Finally, the Ordinary Least Square result also shows that

Government Integrated Financial and Management

Information System (GIFMIS) have a negative but

insignificant influence in curbing financial corruption among

public sectors in Nigeria. This finding negates our aprori

expectation as we expect that the introduction of GIFMIS into

public sector management in Nigeria will lead to the curbing

of financial corruption in the system. Also this findings

agrees with the findings of Kerr and Houghton (2014), Felix

and Rufus, (2018), Akhalumeh and Ohiokha (2018), Odoyo,

Adero and Chumba (2014). And negates the findings of

Bwalya and Mutula (2016) Similarly, when we went further

to interact GIFMIS with other financial reform variables such

as Treasury Single Account (TSA*GIFMIS) on one hand and


(IPPIS*GIFMIS) on the other hand, the results shows that the

interaction between TSA and GIFMIS had a significant

positive effect on curbing financial corruption in the system

while on the other hand, the interaction between IPPIS and

GIFMIS even though it came out positive, had an insignificant

influence in curbing financial corruption across public sector

in Nigeria.

5. SUMMARY OF FINDINGS, CONCLUSION AND

RECOMMENDATION

5.1. Summary of Findings

In this study, we investigated the financial management

reform and curbing financial corruption in Nigeria public

sector. The variables used for this study consists of

dependent and independent variables. The dependent

variable for this study is financial management reform proxy

as IPSAS, TSA, IPPIS, and GIFMIS. Using pooled data, the data

generated were subjected to different statistical tests such as

descriptive statistics, correlation analysis, jargue-Bera

normality test, and auto correlation test. The data gathered

were finally analyzed using Ordinary Least Square (OLS)

regression analysis. The descriptive statistics revealed the

individual characteristics of the variables used in this study

are normally distributed while the regression results

obtained were as follows:

A. International Public Sector Accounting Standards

(IPSAS) when tested as standalone variable was found

to be positively and statistically significant in curbing

financial corruption across public sector in Nigeria. Also,

the interaction result, in model 2, shows that


(IPSAS) interaction with Treasury Single Account

(IPSAS*TSA) and Integrated Payroll and Personnel

Information System (IPSAS* IPPIS) to be positive and

statistically significant in curbing financial corruption in

Nigeria.

B. Treasury Single Account (TSA) when tested as

standalone variable was found to be positively and

statistically significant in curbing financial corruption

across public sector in Nigeria. Also, the interaction

result, in model 2, shows that Treasury Single Account

(TSA) interaction with International Public Sector

Accounting Standards (IPSAS) (IPSAS*TSA) and with


Information System (TSA* GIFMIS) to be positive and

statistically insignificant in curbing financial corruption

in the public sector in Nigeria.

C. Integrated Payroll and Personnel Information

System (IPPIS) when tested as standalone variable was

found to be positively but insignificantly curbing

financial corruption across public sector in Nigeria.

However, the interaction result, in model 2, shows that


(IPPIS) interaction with International Public Sector

Accounting Standards (IPSAS*IPPIS) had a positive and

statistically significant effect in curbing financial

corruption in Nigeria while its interaction with


Information System (IPPIS*GIFMIS) is found not to be

statistically significant, though it has a positive influence

too.

D. Government Integrated Financial Management

Information System (GIFMIS) when tested as

standalone variable was found to be negatively but

insignificantly curbing financial corruption across public



sector in Nigeria. However, the interaction result, in

model 2, shows that Government Integrated Financial

Management Information System (GIFMISS) interaction

with IPPIS (IPPIS*GIFMIS) had a positive but statistically

insignificant effect in curbing financial corruption in

Nigeria while its interaction with TSA (TSA*GIFMIS) is

found to be statistically significant in curbing financial

corruption in public sector in Nigeria.

5.2. Conclusion

It has been found from the study and result analysis above

that Integrated Public Sector Accounting Standards (IPSAS),

Treasury Single Account (TSA), Government Integrated

Financial Management Information System (GIFMISS) if

effectively complied with in all Ministries, Departments and

Agencies can curb financial corruption and enhance

accountability and transparency towards public fund, as well

as Integrated Payroll and Personnel Information System

(IPPIS) if effectively monitored can reduce payroll fraud

which in the long run will also curb financial corruption in

Nigeria public sector.

5.3. Recommendations

Based on the findings and conclusions of the study, the

researchers recommend that;

A. The government should install full designed GIFMIS in

the operational structure of the nation’s public sector.

B. There should be effective/efficient monitoring and

sustenance of IPSASs, TSA, IPPIS and GIFMIS in the

public sector, if Nigerian government is actually sincere

and serious about tackling corruption in the country and

stop cases of financial mismanagement, teaming and

ladling; and prepare financial statements that could

make full disclosure of every material facts and figures.

C. The government has to enhance/upgrade IPPIS to its

fullest maximum to maximize its potential of curbing

Payroll fraud.

5.4. Contribution to Knowledge

Our study contributes to the financial management reform

literature in several ways. To be specific, our study makes

two major contributions to the literature. First, this study is

the first study to the best of our knowledge, to investigate

the financial management reform adoption in curbing

financial corruption in public sector, using four independent

variables, tested as both stand-alone variables and

interacted variables across public sector in Nigeria and the

results are quite revealing.

First, when tested as standalone variables, the model

specified as follows:

MODEL 1: Stand Alone Variables

CORi = λ0 +λ1IPSASi +λ2TSAi + λ3IPPISi + λ4GIFMISi +

μ……………..........(1)

Contributed to knowledge by revealing that:

CORi = λ0 +λ1IPSASi (5.724200{0.00})+λ2TSAi(2.936884{0.01})

+ λ3IPPISi(1.042777{0.32}) + λ4GIFMISi(-0.775726{-0.45.}) +

μ……………..........(1)

All the independent variables specified as shown above

drives financial corruption in public sector in Nigeria

positively, thus can help to reduce financial corruption in

public sector in Nigeria and they are statistically significant

in driving them except IPPIS and GIFMIS. Although, IPPIS

and GIFMIS are not statistically significant in curbing

financial corruption in public sector in Nigeria, IPPIS had

positive influence while GIFMIS had negative influence.

Second, when we interacted our independent variables,

which we specified the model as follows:

MODEL 2: Variables Specified as Interacted Model

CORi = λ0 +λ1IPSASi * λ2TSAi + λ3IPPISi * λ4GIFMISi + λ3IPSASi *

λ4IPPISSi + λ3TSAi * λ4GIFMISi +μ……………..........(2)

Contributed to knowledge by revealing that:

CORi = λ0 +λ1IPSASi * λ2TSAi(.7.784062{0.00}) + λ3IPPISi *

λ4GIFMISi (1.515326{0.15}+ λ3IPSASi *

λ4IPPISi(5.675045{0.00} + λ3TSAi * λ4GIFMISi(5.785610{0.00}+

μ……………..........(2)

Reveals that all the interactions (IPSAS*TSA, IPSAS*IPPIS,

and TSA*GIFMIS), except IPPIS *GIFMIS have positive and

significant influence in curbing financial management

corruption in public sector in Nigeria. This is a Nobel

findings and a strong contribution this study made to

knowledge as all the prior studies we reviewed in literature

richly concentrated on testing the independent variables as

stand-alone variables. We therefore move knowledge a step

further by interacting these variables to see what their joint

effect will be and the findings is quite revealing as it is

displayed above.

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